Salman Y. answered • 06/17/19
Certified Project Project Management Practitioner MBA, 16 years of exp
The phrase "strategic management" is sometimes used as a synonym for "strategy," but the two terms are not actually the same? The company's “strategy” is its plan for market capitalization in competition with other companies. But the “Strategic management” is a process for formulating and implementing that “strategy” for market capitalization.
Therefore the strategic management process is a management technique used to plan for the future: Organizations create a vision by developing long-term strategies. This helps identify necessary processes and resource allocation to achieve those goals. It also helps companies strengthen and support their core competencies. The strategic management process consists of three, four, or five steps
1. Strategic Objectives and Analysis. (Vision, Mission and Values, SWOT and PESTEL Analysis)
2. Strategic Formulation. (Plans, Gather resources)
3. Strategic Implementation (Training, Allocating resources)
4. Strategic Evaluation and Control. (Evaluation , Correction)
The key point here is that strategic management allows a business to orient itself according to its target markets, clients and customers. It helps a business to actualize the right strategies for the business so that higher profitability and brand exposure can be achieved. The information from PESTEL and SWOT analyses should be used to set clear and realistic goals and objectives based on the strengths and weaknesses of the company. Strategic management allows companies to prioritize the tactics most important to achieving the objectives.
Through Strategic management the strategic objectives are achieved and sustained and financial and non-financial benefits are realized. The most important non-financial benefit of strategic management is that it helps a business to become more disciplined and organized. It bridges a link between performance and rewards for the employees. Through strategic planning, a firm can grows rationally, understanding its financial feasibilities.
